Consumer sentiment in the U.S. improved by even more than previously estimated in the month of May, according to a report released by Thomson Reuters and the University of Michigan on Friday.
The report showed that the consumer sentiment index for May was upwardly revised to 84.5 from the preliminary reading of 83.7. Economists had expected the index to be unrevised.
With the unexpected upward revision, the index is well above the final April reading of 76.4 and is now at its highest level since July of 2007.
"The data clearly suggest a faster pace of growth in consumer spending during the year ahead than was anticipated even one month ago," survey director Richard Curtin said, according to Reuters.
The report showed that the barometer of current conditions for May was upwardly revised to 98.0 from 97.5, coming in well above April's 89.9.
Additionally, the expectations index for May was upwardly revised to 75.8 from 74.8 and is up sharply from 67.8 in April.
Reuters noted that rising stock market and home prices prompted more consumers to report that their finances had recently improved rather than worsened for the first time in five years.
On the inflation front, one-year inflation expectations were unchanged at 3.1 percent, while the five-to-ten-year inflation outlook held steady at 2.9 percent.
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